Still not clear Terry. The property is held in the wife's name. Does that mean that (for tax purposes) it's owned fully by her and therefore CGT (if it's sold) is based on her tax rate?

Don't get me wrong. We're cross collaterised too, using equity in our PPOR to buy IPs. As I understand it – as the IPs gain in value you can request the lender to release equity they're holding over your PPOR.See if you can get hold of a copy of the API mag article I mentioned earlier in this thread. That's what guided us with the way we bought…[Read more]

Hi the7,In our case, the loan for the 20% deposit from Lender A went to Lender B to pay that deposit. All the funds have been borrowed for an IP so interest on both loans (the 20% with Lender A and the remaining 80% with Lender is deductible. I'm not an accountant, but my understanding is that as soon as you start mixing up funds used for…[Read more]

So perhaps we can read into this that RAMS are predicting rates to stay low for the next two years, then they either think they will rise or they're not sure hence increasing the fixed rates from 3years on.Seems to be in line with predictions of those economists brave enough to make them in current climate.

Meant to say, they still look quite good compared to the big banks.Wish there was a table that could be relied upon to be up to date + give comparison rates.

Not sure where you're looking, god-of-money.Off HSBC website – 3 year fixed is 5.29% (5.68% comp rate).4.99% is for just one year, and the comp rate is 5.73%.Yes Richard….won't rely on ratecity.com. Perhaps they don't update very often.

Perhaps we are.Investment 3 yr fixed – 5.49% (comp rate for $225,000 is 5.23).Investment 5 yr fixed – 6.29% (comp rate for $225,000 is 5.64%)I'm looking to fix a loan of around $200,000, hence my interest in comp rate for that amount.These figures are off ratecity.com.auWhen you look at the monthly repayments in the comparison tables they look…[Read more]

Geeeeezzz!!! I wish I'd seen that 10 year fixed rate!!! I wonder what the comparison rate was.Any other 10 year fixed rates like that around still?Also….I know fixed rates have gone up slightly, but if Reserve Bank drops the rate again is it at all feasible that fixed rates will come down again??

On the subject of Rams – now that they're owned by Westpace does that mean they're now a safe proposition?Their fixed rates remain very competitive and we're considering refinancing a couple of loans with them.And, yes, it is interesting that Rams seem to be offering a better deal than their parent company, Westpac. Perhaps Westpac is just trying…[Read more]

If you're not in a big hurry, I'd hold off. The great rush by FHBs has overinflated the lower range places thereby eating up any benefit the grants have. That rush is only going to get worse now.Give it another 12mths and you'll have developers and sellers conditioned to accept less cos there'll be fewer buyers out there + interest rates likely to…[Read more]

From their website –3.99% 1 year fixed rate. (Reverting to standard variable rollover rate. Comparison rate 5.60%.Doesn't sound that great.Am I missing something?Carlin

Hi Terry,Thanks for the info.We don't have a LOC. We have our PPOR loan on a variable rate with mortgage offset account into which all IP rents go and from which we pay all bills.The granny flat is self contained so it's a standard residential tenancy, not a boarder.We're in SA. Will have to check re-stamp duty.Wondering if it makes any difference…[Read more]

Not sure why this came off active topics list…..anyone able to help with my queries in previous post??

On this same subject – we rent out a granny flat behind our PPOR on which we claim a percentage of our household utilities expenses against the income we make.FIRST QUESTION – A friend advised us to stop making claims for deductions and depreciation (it's fully furnished and we cover all utilities) as this would mean that when we sell the CGT…[Read more]

Thanks for the answers….so now I'm really hoping that FHBG is extended beyond June 30 because my IP will be a slightly harder sell without it.What are people's views on the likelihood of that extension happening?There's been a bit of media about risk of our own sub-prime debacle because the FHBG is overinflating prices, so perhaps the govt's…[Read more]

Thanks for the tips everyone.Going to IKEA with measurements to see what we can do. Will checkout that Antonius system Ben. Gather it was cheaper to get the doors from Stegbar.cheers,Carlin

I hadn't planned to buy but I did. I saw a bargain, went for it before it got on the market, and got it. Have tenant signed up and we're not even at settlement yet. Rent yield 6.8%. Great location. Plan is to lock in interest rates after the next drop next month. Not sure for how long.The key, as always, is being confident about your research…[Read more]

We've bought two places that we had the condition of access before settlement on. We had no problems at all, and got the work done (cleaning, painting, minor repairs) and tenants moving in day after settlement. Cashflow from day one – we love it!If you don't settle in time you run the risk of vendor benefitting from any work you do, but just need…[Read more]

Thanks for that info.When you talk about exit fees are you talking about the fees involved in going off the fixed rate (which I assume is now higher than the variable rate) before the term ends? cheers,Carlin

Hi Cattleya,Lenders (banks or otherwise) can easily track what you're doing, no matter what paths you send your money on. We're being upfront with what we're wanting to do here, with both lender A and lender B. We could stay with lender A and we know we can borrow sufficient funds, but we are trying to get the bulk of the loan from lender B…[Read more]